There are literally thousands of types of businesses you could choose to operate. Making the choice can be very difficult. You don't want to make a major commitment of time and money to something that is not something you will love, or that is not financially viable.
One way to start is to look at lists information about different types of businesses to help explore possibilities; however, all lists have limitations. They are nice to scan, through -- and great if they describe precisely the business you want to start, but even lists with hundreds of possibilities barely scratch the surface. I have put together a resources on a variety of businesses. It is far from comprehensive, but is an information resource that I am constantly building on.
Certainly, the most common advice is that any business you operate should be something you love. Even if you are certain about what you love and/or want to do, finding the right business that best utilizes your skills and interests needs to be considered carefully. For instance, someone who loves art can be an artist, run an art gallery, do restoration, or teach art. Each requires different skills, but all fit with loving art. Part of knowing yourself is finding the right fit for what you find fun to do.
For those of us have do not have a clearcut passion, deciding what is the "right" business is often a major stumbling block in taking the big step. Most of us have an assortment of skills and interests that are not focused towards one particular field of endeavor. In some ways we are blessed because a wide variety of things can make us happy, but it can also provide confusion when there are so many different directions one could go. How do you make the choice?
It is not uncommon to get pulled into scams because of this indecision. Potential entrepreneurs know they want to take the big leap, but can't decide. Along comes a friend or an ad with promises of making riches overnight using their program. If the deal seems too good to be true, it is. No one is making money overnight. A successful business is built slowly based on a well-designed business plan.
So, how do you know what kind of business to start? You need to start with writing down what you personal goals are for the business as a start. Are you seeking certain income level? Do you want to grow into a major company or will something small be sufficient? Is this a means of making money so you can do other things or are you seeking a business that is fun in-and-of itself? Describe the ideal business as thoroughly as you can.
You next step involves using a technique common in strategic planning -- SWOT analysis. What you should have at the end of this assessment is a clear set of attributes a business must have to be "right" for you. The next step is to consider how to choose the right one.
This is where you need to get creative. Hopefully, by this point you have some sense of the general area you would like to work in, be it sports, computers, or any of the other hundreds of possible industries. Take the SWOT analysis developed earlier and apply it to the industry of interest. What businesses in this industry are best considering your strengths and weaknesses? What businesses are best for the opportunities and threats that are confronting you?
While brainstorming with a friend is useful at the preliminary stages to identify possibilities, this is where you really need to make your own decisions. You are the one who has to live with this business day-after-day for years to come. It is a major life decision. It is, of course, always possible to close or sell a business, but if you are going to put a positive effort into it, it needs to be something you are comfortable with committing to for a significant period of time.
To make the decision, write down your SWOT analysis, your long-term goals, and your preferences from the choices listed above. Take a moment to peruse my list of business characteristics that may be an additional factor in your decision. All this information you have compiled should give you a relatively detailed overview of the qualities you need for a business to have for it to be satisfying.
All these decisions can be overwhelming. For people who hate to make decisions, it is a near impossibility. But decisiveness is a necessity in entrepreneurship. If that is one of your weaknesses, perhaps you need to team up with someone else for this venture -- or reconsider entrepreneurship.
If you know what you want to do, but are concerned about the financial aspects, write a simple business plan. While time consuming, it will give you all the information you need (given that you are realistic in your planning) to tell you what your financial obligations will be. If the financing looks like it will be a problem, visit my financing information to see what options may be available to you.
If you feel that you are ready to go, move on starting a business. And, remember to have fun!
